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When comparing an IRA vs. 401(k), each has unique benefits. Discover the pros, cons and which option may best fit your financial goals.
“Continue contributing to a Roth or traditional IRA, but remember the contribution limits are relatively low compared to a 401(k),” Meyer said. (The maximum contribution is $7,000 for 2024).
Employee contribution limit of $23,500/yr for under 50; $31,000/yr for age 50 or above in 2025; limits are a total of pre-tax Traditional 401(k) and Roth 401(k) contributions. [4] Total employee (including after-tax Traditional 401(k)) and employer combined contributions must be lesser of 100% of employee's salary or $69,000 ($76,500 for age 50 ...
Contribution limits for both Roth and traditional 401(k) plans are the same: $23,000 in 2024, up slightly from $22,500 in 2023. ... vs. Roth IRA. Likewise, Roth 401(k)s hold similarities and ...
However, there are some distinct differences between a 401(k) and a traditional IRA, and three of those differences make the 401(k) the optimal choice (in my humble opinion) for most people. 1 ...
Continue reading → The post IRA vs. Roth IRA vs. 401k: Key Differences appeared first on SmartAsset Blog. Other workplaces, however, might not offer this retirement plan.
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